The nation's mortgage rates have hit another record low. According to mortgage giant Freddie Mac, mortgage rates dropped again this week to historic lows on both 15-year and 30-year fixed rate loans.
Mortgage experts say the average rate on the 30-year fell to 3.34% percent and the 15 year fell to 2.65% percent and is the result of an increased demand for government bonds. A mortgage information company says in the wake of last week's stock sell off after the election, many investors put their cash in Treasury bonds which lowers bond yields and mortgage rates tend to follow.
The Mortgage Bankers Association says another factor for the drop was a decrease demand for loans because of Hurricane Sandy. With these record low rates, a home buyer today would save about $27 a month for every $100,000 borrowed, compared with last November. That's a savings of $486 a year on a typical mortgage balance of $150,000.